Timeline for Question about pricing kernel definition in "Quality minus junk" paper
Current License: CC BY-SA 4.0
7 events
| when toggle format | what | by | license | comment | |
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| Apr 21 at 18:18 | vote | accept | Newbie | ||
| Apr 12 at 12:07 | answer | added | KaiSqDist | timeline score: 0 | |
| Apr 12 at 11:51 | history | edited | nbbo2 | CC BY-SA 4.0 |
add link to paper
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| Apr 12 at 10:19 | comment | added | Newbie | @nbbo2 Oh, I've seen this, but I still fail to link the equation '$$ \frac{M_{t+1}}{M_t} = \frac{1}{1+r^f} \left(1 + e^M_{t+1}\right) $$' to the more general model. Could you shed some light on this for me? | |
| Apr 12 at 8:22 | comment | added | nbbo2 | What you describe is a consumption based pricing kernel, but that is only a special case of pricing kernel. A more general definition is given here en.wikipedia.org/wiki/Stochastic_discount_factor It is really just a state variable that measure the value to you of receiving one dollar in a particular future state. | |
| S Apr 12 at 7:26 | review | First questions | |||
| Apr 12 at 15:05 | |||||
| S Apr 12 at 7:26 | history | asked | Newbie | CC BY-SA 4.0 |